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Solomon: Solana’s Yield-Bearing Stablecoin Documentation

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clock Nov 25,2025
pen By Joshua
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Introduction

In decentralized finance, stablecoins are the bedrock of liquidity—the digital dollars that underpin nearly every transaction. Yet, for an industry obsessed with capital efficiency, its most foundational asset is profoundly inefficient. Billions of dollars in digital capital are held in wallets across countless protocols, earning absolutely nothing for their holders.
 
This represents a massive opportunity cost. While the rest of DeFi is obsessed with yield, the foundational layer of the ecosystem—the stablecoin—remains largely passive. A new protocol, Solomon, has identified this inefficiency and is built to solve it directly. By creating what it calls a “more composable dollar,” Solomon aims to transform idle capital into productive capital, challenging the very notion of what a stablecoin should be.
 

 

 

1. Your Stablecoins Should Be Productive, Not Passive

Solomon’s fundamental value proposition is to change the standard user experience where stablecoins pay no yield. The protocol’s core product, USDv, is a stablecoin engineered to maintain its peg to the dollar and remain completely spendable and composable, just like any other. The key difference is that it’s designed from the ground up to earn yield. Crucially, USDv is a non-rebasing token, meaning its yield accrues without changing the number of tokens in a user’s wallet—a key feature for seamless integration across the DeFi ecosystem.
 
This simple but powerful shift turns every digital dollar from a passive store of value into an active, productive asset. It’s a direct response to the billions in idle capital sitting in the ecosystem, putting those funds to work for the user. The mission is elegantly captured by the project’s own mantra:
Make every dollar earn.

 

2. Yield Can Be More Than Just Staking

When most DeFi users think of yield, they think of staking—locking up a token in a contract to receive rewards. Solomon supports this traditional model, allowing users to stake their USDv to receive regular yield, represented by the sUSDv token. However, it also introduces a more novel and flexible mechanism for yield distribution.
 
This second method is called “Yield as a Service” (YaaS), a system that streams yield directly to approved USDv holders without requiring them to stake. This moves beyond simple rewards and into the realm of truly programmable money. Yield is no longer a destination (a staking contract) but a native property of the asset itself, a stream that can be directed to wallets, smart contracts, or used to power novel applications like yield-based subscriptions or self-repaying loans. The ‘approved holder’ mechanism suggests a controlled, permissioned layer to this feature, allowing for targeted yield streams to specific partners or platforms rather than a universal airdrop.
 

 

3. Transparency You Can Actually Verify

After years of high-profile collapses fueled by opaque reserves, the stablecoin industry faces a trust deficit. Solomon’s approach isn’t just about transparency; it’s about providing cryptographic and institutional proof to rebuild that trust. The protocol uses Ceffu, a leading institutional custody provider, to securely hold all user funds and protocol assets.
 
More importantly, this custody isn’t just a claim; it’s verifiable. Ceffu provides regular attestation reports that publicly detail the custody account balances and asset holdings. To complement this, Solomon also maintains a dedicated “Protocol Statistics” page that offers ongoing reporting on the state of the protocol. This dual approach provides a verifiable and institutional-grade layer of trust that gives users a clear window into the backing of their assets—a critical feature in an industry where transparency is not always a given.
 

 

Conclusion: The Future of the Digital Dollar?

By transforming the digital dollar from a static placeholder into a natively productive asset with verifiable backing, Solomon isn’t just offering a new stablecoin—it’s proposing a fundamental upgrade to DeFi’s base layer of liquidity.
 
It prompts a fundamental question for the entire industry. As the DeFi ecosystem matures, should a native, verifiable yield become the new standard for every digital dollar?
 

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